Your firm has an average collection period of $38$ days. Current practice is to factor all receivables immediately at a discount of $1\mathrm{.}75$ percent What is the effective cost of borrowing in this case? Assume that default is extremely unlikely.

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Effective annual rate